After huge daily falling flag (October/November) in which gold was driven as a roller coaster, sellers have finaly decided to go lower in December. As we can see, strong support at 1260/65 is broken today and that level is 61.8 fibo return from July 10. (1204.75) > August 09. (1357.44) growth. Weekly MA100 at 1256 is broken today as well and it’s possible for gold to close the week bellow the moving average line. Could this be the sign of free fall toward 1204? It could be, while the precious metal doesn’t show any signs of recovery for now. 1240 could be the next target for sellers, while the 1204 could be the next tempting target for them, the 100% fibo return. We didn’t analyse gold since August 17. because there was not much to analyse seriously. FED possible rate hike comes on December 13. and that could affect negatively on gold additionally. Btw. If 1200 will be tested in 2017, we could see the 1100 level in 2018 reached. What’s you view traders?
We are short gold as well since 1256 today, going with the current strong bearish trend. SL is placed at 1266, target at 1205, but we will follow the move and decide what to do during it. If gold will be held at aprox 1240, where we see a potential support, we will close our short at that point and wait for the new possible opportunity for short after FED’s rate decision on December 13.